Thursday, November 24, 2011

20111124 0947 Soy Oil & Palm Oil Related News.

Soybeans (Source: CME)
US soybean futures fall to a 13-month low as uncertainty surrounding the global economy encouraged traders to reduce risk exposure. Broad-based asset selling and a rising dollar was at the center of risk-off moves. Otherwise traders took a cautious approach ahead Thanksgiving. CBOT January soy ended down 30 1/2c at $11.22 1/2 a bushel.

Soybean Meal/Oil (Source: CME)
Soy product futures slump in unison with soybeans, joining a broad-based sell-off across asset classes. Worries about the global economy enticed traders into shedding risk, with analysts also worried about potential demand destruction in an economic slowdown, particularly in China, analysts say. CBOT Dec soymeal ended down $9.50 at $282.50/short ton; Dec soyoil dropped 1.46c to 49.32c/lb.

Palm edges down on slowing growth fears
SINGAPORE, Nov 23 (Reuters) - Malaysian palm oil futures dipped as weak manufacturing survey data from China and a downward revision of U.S. GDP figure stoked worries about a slowing global growth.  
"The market was expecting some correction due to the past rise. Technically a correction at this point would be seen as something healthy for the market," said a trader with a foreign commodities brokerage in Kuala Lumpur.  

Golden Agri-Resources Forecasts Higher Palm-Oil Production on Expansion (Source: Bloomberg)
Golden Agri-Resources Ltd. (GGR), the world’s second-largest oil-palm planter, said that output will increase as plantations are expanded in Indonesia and new trees mature, bolstering profitability. “We do expect to plant more areas and therefore have additional production in the coming years,” Executive Director Rafael Buhay Concepcion Jr. said in an interview, without giving a forecast for volumes. “That, complemented by fairly strong prices, should continuously provide us pretty good results.” Rising harvests from Singapore-based Golden Agri may contribute to increased output from Indonesia, the world’s largest producer. The company, which has 17 “buy” calls from analysts among the 21 recommendations tracked by Bloomberg, was looking at acquisitions, Concepcion said, without giving details.
“Definitely there will be growth,” said Concepcion, speaking by phone from Jakarta yesterday. The company produced 1.58 million tons of crude palm oil in the first nine months of 2011, 24 percent more than a year earlier. Production in 2010, totaled 1.85 million tons, down from 1.91 million in 2009.

Palm oil production up 10 pct in 2011 -Sampoerna
JAKARTA, Nov 23 (Reuters) -    Output at palm oil firm Sampoerna Agro  will grow by more than 10 percent this year, versus 289,000 tonnes in 2010 and higher than a previous estimate, an official of the Indonesian firm said on Wednesday.
Favourable weather will boost production, as will investments made on infrastructure such as road improvements and flood defences, Michael Kesuma, head of investor relations, told Reuters.

EU likely to curb Indonesian palm biofuel imports
KUALA LUMPUR, Nov 23 (Reuters) - European Union (EU) governments are likely to curtail their imports of Indonesian palm oil-based biofuel, which has become cheaper due to a tax cut, to protect their own domestic plants, a top analyst said on Wednesday.
"The EU has supported the build of local production capacity that is heavily underutilised and will not be able to survive if foreign competitors to rapeseed biodiesel cannot be kept out of the market," Fredrik Erixon, director of the European Centre for International Political Economy told Reuters.

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